Friday, August 1, 2025

Squeezing the Squeezed

 

Squeezing the Squeezed

In contemporary society, we seem to be operating under a harsh and regressive principle: those who are already burdened must be burdened further, especially if their ability to resist is minimal. This unfortunate trend is particularly evident in Pakistan, where increases in taxes, electricity bills, and deductions in salaries disproportionately target government employees, most notably those in the education and healthcare sectors. These individuals, rather than being supported, have become the most convenient scapegoats for the state's financial imbalances.

This situation is reminiscent of an Indian film in which a state Raja repeatedly raises taxes to fund his ambitions, ignoring the suffering of his people. Each time they protest, he uses force to extract more from them. Similarly, in our context, whenever the government faces a financial shortfall or budgetary gap, the immediate response is to cut into the earnings and benefits of public servants. It appears the state is never hesitant to wield its metaphorical sword against the very people who have served it faithfully.

Government employees already pay a disproportionate share of taxes and fulfill remittance obligations more consistently than any other segment of society. Yet, their financial futures are now under severe threat. Pensions, gratuities, and other post-retirement allowances are being slashed arbitrarily and without transparent justification. Historically, public sector employment was desirable because it offered a sense of financial security after retirement, typically after 35 or more years of dedicated service. Today, even that sense of security is rapidly eroding.

A particularly troubling example is the recent elimination of Leave Encashment, a policy through which employees were compensated for unused leave. The government has now replaced this with the Leave Preparatory to Retirement (LPR) system, which denies financial compensation even to those who diligently saved their leave. Gratuity payments have also been drastically reduced, and pension percentages are declining. These policy shifts have understandably created panic among those scheduled to retire in 2025 or in the coming months.

This sense of uncertainty is compounded by the broader economic crisis: spiraling inflation, record-high taxes, skyrocketing food and energy prices, and increasingly unaffordable healthcare. Retired employees, often elderly and vulnerable, are now left to navigate a hostile economic landscape with diminishing resources. Rather than being rewarded for decades of service, they are met with neglect and financial insecurity.

What is particularly egregious is that the government has also refused to release group insurance payments and has withdrawn several allowances—such as the Discrepancy Allowance, which continue to be paid in other provinces. The result is not only declining morale but also a decline in the quality of work in essential sectors like education and health.

These developments have serious social and psychological repercussions. In the past, individuals worked hard to secure admission to higher education institutions and eventually land government jobs, encouraged by the promise of long-term stability. Now, seeing the deteriorating conditions of public sector retirees, many young people are disillusioned. They are turning instead to vocational skills or private enterprises, seeking immediate income over long-term service.

The irony is staggering. Government employees are the only segment of society from whom taxes are deducted directly from their salaries. Yet, they are taxed again and again—on purchases, ATM use, banking transactions, telecommunications, and digital services. Meanwhile, powerful groups such as industrialists, traders, large landowners, and even professionals often pay little to no taxes. Many enjoy state-subsidized perks like free electricity and fuel, all while evading tax obligations through loopholes and underreporting.

Given these realities, it is imperative for the state to recognize and fulfill its responsibilities to government employees. The state must ensure that those who contribute most consistently and honestly to national revenue are not abandoned in retirement. Through mechanisms such as mutual funds, pension insurance schemes, or public-private partnerships, sustainable support systems must be established for retirees. In Pakistan, finding employment post-retirement is nearly impossible. Older individuals face health issues, mental stress, and often a deep sense of loss and nostalgia, making re-entry into the workforce an unrealistic expectation.

It is therefore not only a matter of economic justice but of moral duty for the government to support its retired employees. These individuals have served the nation for decades and deserve dignity, security, and care, not abandonment and uncertainty.

 

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Squeezing the Squeezed

  Squeezing the Squeezed In contemporary society, we seem to be operating under a harsh and regressive principle: those who are already bu...